CORRECT:2nd UPDATE:Scott Wilson Agrees GBP161M Takeover By URS Corp

28th Jun 2010 10:05

("=2nd UPDATE: Scott Wilson Agrees GBP161M Takeover By URS Corp," at 0853 GMT, misstated the name of the broker in the eleventh paragraph. The correct version follows:) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Engineering consultant Scott Wilson Group PLC (SWG.LN) said Monday it agreed a GBP161 million takeover by U.S. peer URS Corp. (URS), but a second firm said it is considering a bid for the company too. The prospect of a bidding war pushed Scott Wilson's stock above URS's 210 pence a share offer, and at 0848 GMT, its shares were 101 pence or 85% higher at 220.5 pence. San Francisco-based URNS, a provider of engineering and construction services, said it offered to acquire Scott Wilson for 210 pence a share, valuing it at GBP161 million. URS Chairman and Chief Executive Martin Koffel told Dow Jones Newswires the acquisition will give URS a much bigger presence in the U.K., where the two companies' combined services and expertise will put it in a better position to win work on major infrastructure projects like new railways, roads, airports and ports. URS is taking a long-term view on the U.K. market, said Koffel. The U.K.'s coalition government has signaled it wants the country to be a more attractive place for businesses and that requires modern infrastructure, he said. However, spending cuts and project delays are expected in the short term as the government grapples with the public finances. The acquisition of Scott Wilson would also help URS expand overseas, Koffel said. The company has offices in China, India, Poland and the Middle East, he said. The acquisition, if finally made, would add to URS's earnings in fiscal 2011, Koffel said. Scott Wilson's board recommended shareholders accept the deal, which, at 210 pence a share, represents a 76% premium to Friday's closing price. However, Denver, Colorado-based engineering services firm CH2M HILL Cos. Ltd. said it is considering a possible offer for Scott Wilson of its own. It didn't give terms and said there's no certainty a firm offer will be made. Broker Panmure Gordon said there's a good chance the deal with URS will go through. Under the terms of the recommended offer between URS and Scott Wilson, URS has the right to match any competing offer, said Koffel. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires June 28, 2010 05:05 ET (09:05 GMT)